Done deal: Avago is buying Broadcom for $37 billion

Well, it’s official: Avago Technologies [fortune-stock symbol=”AVGO”] is buying rival chipmaker Broadcom [fortune-stock symbol=”BRCM”] in a cash-and-stock deal worth a whopping $37 billion. Avago is paying $17 billion in cash and the rest in stock, according to a statement. News of the deal first leaked yesterday.

The acquisition, expected to close in the first quarter of 2016, values Broadcom at $54.50 per share in cash — well higher than Broadcom’s $47.06 per share closing price on Tuesday, but below Wednesday’s media-fueled closing price of $57.16.

Broadcom makes radios for cellphones and other consumer devices, plus chips used in networking equipment for the data center. Both of its businesses could compliment Avago’s more industrial and component-level activities. Avago makes analog and mixed-signal chips for automotive, industrial and communications applications. It also makes custom chips known as ASICS that are used in networking.